CCE Vs. JAGANNATH TEXTILES CO. LTD.

JUDGEMENT

(1.) REVENUE is aggrieved by the order of the Commissioner (Appeals) setting aside the demand of duty on cotton yarn containing Synthetic Staple fibre manufactured and cleared by the respondents from their factory during the relevant period, on the ground that the final product on which duty demand was raised and confirmed by the adjudicating authority, was not tested to ascertain as to whether it contained synthetic staple fibre and on the ground that sales invoices described the goods as polyester waste (which initially was a mixed waste containing cotton and polyester but subsequently segregated in the godown of the respondents) and only cotton waste was cleared to the factory of the respondents and further used in the manufacture of cotton yarn.

(2.) WE have heard both sides.

(3.) THE appeal is thus allowed by way of remand.